Carla Corporation sold 160 convertible, 10-year bonds with face value $160,000. The bonds pay interest December 31 each year. Each bond pays 4% annual interest and each bond can be converted to ten common shares at the bondholders request. The sale resulted in conversion rights of $23,553. On January 1, 2021, Carla offered the shareholders a price of 106 if they would agree to retire their bonds early. All of the bondholders agreed to retire their bonds early. At the time of the conversion, the market value of the bonds was $144,000 and the carrying value was $141,000. Prepare the journal entry to record the conversion of the bonds into common shares

Carla Corporation sold 160 convertible, 10-year bonds with face value $160,000. The bonds pay interest December 31 each year. Each bond pays 4% annual interest and each bond can be converted to ten common shares at the bondholders' request. The sale resulted in conversion rights of $23,553. On January 1, 2021, Carla offered the shareholders a price of 106 if they would agree to retire their bonds early. All of the bondholders agreed to retire their bonds early. At the time of the conversion, the market value of the bonds was $144,000 and the carrying value was $141,000. Prepare the journal entry to record the conversion of the bonds into common shares. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit